NEW DELHI: The Union Cabinet on Wednesday approved an incentive scheme worth Rs 1,300 crore to promote RuPay debit cards and low-value BHIM-UPI transactions ((up to Rs 2,000).
Under the scheme, the acquiring banks will be incentivised by the government, by way of paying percentage of value of transactions (person to merchants-P2M) done through RuPay debit cards and low-value BHIM-UPI modes of payments.
“Government will invest Rs 1,300 crore so that more Indians can move into the digital fold through BHIM-UPI and RuPay debit cards,” said Ashwini Vaishnaw, minister of Electronics and Information Technology. As per the scheme, the government will reimburse transaction charges levied on digital payments made by persons to the merchant as part of the merchant discount rate (MDR).
“This scheme will facilitate acquiring banks in building robust digital payment ecosystem and promoting RuPay debit card and BHIM-UPI digital transactions across all sectors and segments of the population and further deepening of digital payments in the country. It will also help in making accessible digital modes of payments to unbanked and marginalised populations,” the electronics and information technology ministry said.
Vaishnaw also informed that the country witnessed a record number of digital transactions at 423 crore valued at Rs 7.56 lakh crore (nearly $ 100 billion) last month.
Thus, the scheme will further spur research and development and innovation in fintech space, and will help the government in further deepening of digital payments in various parts of the country.